Stocks To Consider Under $10 (TIVO, SIRI, C)

Buying stocks under $10 can pay off big time. Many stocks that were trading under this level in March 2009 have doubled and tripled already. Three stocks that are currently trading under $10 and have considerable price appreciation potential are TiVo TIVO, Citigroup C and Sirius SIRI. TiVo - Just today, Chicago based hedge fund Citadel disclosed a 5.3% stake in the company. While TIVO's operating business has been struggling, the company is in the final stages of patent litigation involving Dish Network DISH and Echostar SATS. The case is currently being reviewed en banc by the United States Court of Appeals for the Federal Circuit. That decision could come any day now, and a victory would likely send the stock skyrocketing. The shares trade at around $8.66, but the median Wall Street price target on the stock is $13.00. Citigroup - This bank has had a considerable amount of problems, but it looks as if Citi may finally be ready to turn the corner. One major catalyst for Citi could be increased institutional ownership if the company can get its share price over $5. Many institutions have bylaws which prohibit them from buying stocks under $5. For this reason, Citi is under owned, and there could potentially be some big marginal buyers once the stock rises over $5. Over the last 52-weeks, C shares have gained around 10%. Sirius - Sirius (SIRI) has been one of the best performing stocks over the last 52-weeks, rising almost 100%. The shares are currently trading at $1.71 and the company has a market cap of $6.73 billion. This is a play on the ongoing recovery in the auto industry, as SIRI does well when new car sales are rising. The stock trades at a trailing P/E of 171, a forward P/E of 34.22 and a PEG ratio of 1.92.